Department of Labor's $43.1M contract for Job Corps Center operations awarded to RES-CARE, INC

Contract Overview

Contract Amount: $43,141,852 ($43.1M)

Contractor: Res-Care, Inc

Awarding Agency: Department of Labor

Start Date: 2010-08-01

End Date: 2016-01-31

Contract Duration: 2,009 days

Daily Burn Rate: $21.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: OPERATION OF PINELLAS JOB CORPS CENTER.

Place of Performance

Location: SAINT PETERSBURG, PINELLAS County, FLORIDA, 33712

State: Florida Government Spending

Plain-Language Summary

Department of Labor obligated $43.1 million to RES-CARE, INC for work described as: OPERATION OF PINELLAS JOB CORPS CENTER. Key points: 1. The contract's cost-plus-incentive-fee structure suggests a focus on performance-based outcomes. 2. Full and open competition was utilized, indicating a potentially competitive bidding process. 3. The contract duration of approximately 5.5 years (August 2010 - January 2016) allowed for sustained service delivery. 4. The contract was awarded to a single entity, RES-CARE, INC., for the operation of the Pinellas Job Corps Center. 5. The North American Industry Classification System (NAICS) code 611519 points to specialized technical and trade schools. 6. The contract's value of over $43 million over its term represents a significant investment in workforce development.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more granular data on the specific services provided and the number of students served. However, the cost-plus-incentive-fee (CPIF) pricing structure implies that the government aimed to incentivize efficiency and performance, which can be a good value driver. Without comparable contracts for similar Job Corps centers or detailed cost breakdowns, a precise value-for-money assessment is challenging. The total award amount of $43.1 million over nearly six years suggests an average annual cost of approximately $7.8 million, which needs to be evaluated against the scale and scope of operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The fact that 6 bids were received indicates a reasonable level of interest in this service. This competitive process is generally expected to lead to more favorable pricing and better service offerings for the government. The specific details of the evaluation criteria and the winning proposal are not provided, but the initial competition level is a positive sign for price discovery.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation among potential contractors.

Public Impact

The primary beneficiaries are the individuals enrolled in the Pinellas Job Corps Center, who receive vocational training and education. The contract delivers services aimed at improving workforce readiness and employability for disadvantaged youth and young adults. The geographic impact is focused on Pinellas County, Florida, where the Job Corps center is located. Workforce implications include the employment of instructors, administrative staff, and support personnel at the center, as well as the placement of graduates into the civilian workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPIF contract type can lead to cost overruns if not carefully managed and monitored by the government.
Reliance on a single contractor for an extended period could lead to complacency or reduced innovation over time.
The effectiveness of the training and placement services is critical to justifying the significant federal investment.

Positive Signals

The use of full and open competition suggests a robust initial vetting of potential service providers.
The incentive fee component of the contract structure encourages the contractor to meet or exceed performance targets.
The sustained nature of the contract allows for long-term program development and impact.

Sector Analysis

The Job Corps program falls within the broader education and workforce development sector, specifically focusing on vocational training. This contract supports the operation of a specialized trade school, aligning with the NAICS code 611519. The market for such services involves educational institutions, non-profit organizations, and private companies that specialize in workforce training and development. Federal spending in this area aims to address skills gaps and provide pathways to employment for underserved populations. Comparable spending benchmarks would involve analyzing the operational costs of other Job Corps centers or similar government-funded training programs.

Small Business Impact

The provided data indicates that small business participation (sb) was false for this contract. This suggests that there were no specific small business set-aside requirements or that the primary contractor was not a small business. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses, which is a common practice in larger federal contracts to promote small business engagement.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Labor's Employment and Training Administration. Mechanisms likely included regular performance reviews, financial audits, and site visits to ensure compliance with contract terms and performance standards. The CPIF structure itself implies ongoing monitoring of cost and performance metrics. Transparency would be facilitated through contract reporting requirements and potentially public-facing program evaluations, though specific details on IG involvement or detailed oversight reports are not present in the provided data.

Related Government Programs

Workforce Innovation and Opportunity Act (WIOA) Programs
Adult Education and Literacy Programs
Vocational Rehabilitation Services
Federal Job Training Programs

Risk Flags

Contract duration
Contract type complexity (CPIF)
Potential for cost overruns
Need for robust performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $43.1 million to RES-CARE, INC. OPERATION OF PINELLAS JOB CORPS CENTER.

Who is the contractor on this award?

The obligated recipient is RES-CARE, INC.

Which agency awarded this contract?

Awarding agency: Department of Labor (Employment and Training Administration).

What is the total obligated amount?

The obligated amount is $43.1 million.

What is the period of performance?

Start: 2010-08-01. End: 2016-01-31.

What was the specific performance criteria tied to the incentive fee in this contract?

The provided data does not specify the exact performance criteria linked to the incentive fee for the OPERATION OF PINELLAS JOB CORPS CENTER contract. However, Cost-Plus-Incentive-Fee (CPIF) contracts typically tie incentive fees to achieving specific, measurable outcomes. For a Job Corps center, these could include metrics such as student enrollment rates, on-time graduation rates, job placement rates (both in-field and at a certain wage level), and potentially student satisfaction scores. The government and the contractor would have negotiated these targets before contract award. The incentive fee would be earned if the contractor exceeded baseline performance targets, while penalties or reduced fees might apply if targets were missed. Detailed performance reports and audits would be necessary to verify achievement of these criteria.

How does the annual cost of this contract compare to other Job Corps centers?

To compare the annual cost of this contract ($43.1M over approx. 5.5 years, averaging ~$7.8M/year) to other Job Corps centers, we would need access to a database of similar contracts or annual reports from the Department of Labor detailing the operational budgets of various centers. Factors influencing cost include the size of the center (number of students served), the types of vocational programs offered (some are more resource-intensive than others), the cost of living in the geographic location, and the specific services provided (e.g., housing, meals, transportation). Without this comparative data, it's difficult to definitively state whether this contract represented a high, low, or average cost per center. A comprehensive analysis would involve normalizing costs by student capacity or program intensity.

What was the track record of RES-CARE, INC. with federal contracts prior to and during this award?

Information regarding RES-CARE, INC.'s specific track record with federal contracts prior to and during the 2010-2016 period of this Pinellas Job Corps Center contract is not detailed in the provided data. A thorough assessment would require searching federal procurement databases (like FPDS or SAM.gov) for other contracts awarded to RES-CARE, INC., examining their performance history, any past performance issues, contract modifications, and overall value of their federal portfolio. Understanding their experience with similar workforce development or educational service contracts would be crucial in evaluating their capability to manage the Job Corps center effectively. Past performance is a key factor in federal contracting decisions.

What were the primary challenges faced in operating the Pinellas Job Corps Center under this contract?

The provided data does not explicitly list the primary challenges faced in operating the Pinellas Job Corps Center under this contract. However, common challenges in operating Job Corps centers often include recruiting and retaining qualified instructors and staff, managing student retention and completion rates, ensuring effective job placement for graduates in a competitive labor market, adapting training programs to evolving industry demands, and addressing the diverse socio-economic needs of the student population. The CPIF contract structure suggests that the Department of Labor was keen on incentivizing the contractor to overcome these potential hurdles and achieve specific performance outcomes related to student success and program efficiency.

How did the services provided by this contract align with the Department of Labor's broader workforce development goals?

This contract directly aligns with the Department of Labor's core mission of preparing American workers for jobs. The Job Corps program, in general, targets disadvantaged youth and young adults, providing them with the skills and education needed to secure meaningful employment. By funding the operation of the Pinellas Job Corps Center, the Department of Labor aimed to increase the employability of individuals in that region, contributing to a more skilled workforce and reducing unemployment. The focus on vocational training in specific trades addresses identified labor market needs, supporting the Department's goal of connecting workers with in-demand occupations and fostering economic self-sufficiency.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Other Technical and Trade Schools

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: DOLJ09UA00025

Offers Received: 6

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Carestream Health, Inc. (UEI: 244882650)

Address: 9901 LINN STATION RD, LOUISVILLE, KY, 40223

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $65,904,655

Exercised Options: $47,955,576

Current Obligation: $43,141,852

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline